Autumn week 5-8 Flashcards
1
Q
What is the invisible hand and what economist favored it?
A
works through prices that have the effect both of
signalling true social value and of motivating even the selfish to take
this value into account: internalising the effects of their economic
decisions on others
2
Q
Why does Market failure occur
A
The clearest problems arise if the existence or allocation of rights is
unclear
3
Q
what is the basic idea behind individual choice theory
A
is that individuals choose the best alternative from
the available set of alternatives.
4
Q
A
